Tag: A-Level

The cross elasticity of demand for pizza with respect to the price of a soda is

Select ONE answer:

1. negative because the goods are complements.
2. positive because the goods are complements.
3. negative because the goods are substitutes.
4. positive because the goods are substitutes.

What is the the distinction between movements along a demand curve and shifts of a demand curve?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1

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The demand for ________ is more elastic than the demand for ________.

Select ONE answer:

1. Pepsi; all soft beverages
2. food; exotic vacations
3. all personal computers; Dell computers
4. chewing gum; cars

What is the implication on demand of consumer objectives and decisions?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.

If the price of one good increases by 3 percent and the quantity demanded of another good increases by 2 percent, the cross elasticity is ________ and the two goods are ________.

Select ONE answer:

1. 2/3, substitutes
2. 3/2, substitutes
3. 2/3, complements
4. 3/2, complements

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.